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Iraq

Rebuilding Iraq

Attachments

United States General Accounting Office
Washington, DC 20548

The Honorable Richard G. Lugar
Chairman
The Honorable Joseph R. Biden
Ranking Minority Member
Committee on Foreign Relations
United States Senate

The Honorable Henry J. Hyde
Chairman
The Honorable Tom Lantos
Ranking Minority Member
Committee on International Relations
House of Representatives

Subject: Rebuilding Iraq

Rebuilding Iraq is a U.S. national security priority. As part of this effort, Congress appropriated $79 billon in emergency supplemental funds for fiscal year 2003 for military operations and Iraq's reconstruction, including humanitarian relief, peacekeeping, and economic and political reform. We have issued reports on similar programs to rebuild countries in the former Yugoslavia, the former Soviet Union, and other locations (see attachment III for a listing of previous GAO reports). Based on this work, we have developed short papers to help congressional decision-makers think about and prioritize the range of issues related to rebuilding Iraq. These papers cover the following topics.

Food Aid and Humanitarian Relief

The conflict in Iraq has compromised the country's food security and its medical and water systems. In response, the World Food Program has developed an emergency plan to meet the food needs of 27 million Iraqis, at a cost of $1.2 billion, from March 25 to September 25, 2003. Other donors, including the United States, are providing medicine and potable water to many locations. In addition, as many as 1 million Arabs may be displaced in Northern Iraq by Kurds, who are retaking the homes and villages they were expelled from over the last three decades. Potential issues are the total cost of food and humanitarian aid, coordination and effectiveness of humanitarian aid, the transition from emergency aid to sustainable living, and efforts to provide for the internally displaced.

Peace Operations

The peace operation in Iraq presents significant security and political challenges for the United States. Some tasks for the peacekeeping phase are providing security, establishing an interim authority, establishing conditions for a transition to democracy, and directing efforts to rebuild the economy. Another key task is rebuilding a professional, civilian-controlled military to help ensure stability and protect the territorial integrity of Iraq once the peacekeeping forces withdraw. Potential oversight issues include the role, structure, and transition strategy of the peace operation; progress and challenges in providing security and establishing an interim authority; the role of allies and international organizations; and the factors that could hinder the effectiveness of U.S. assistance to train and equip an Iraqi national army.

Economic Reform and Reconstruction

Building a sustainable market economy in Iraq will likely be a long-term effort. Iraq's centralized economic and political structure will require fundamental changes similar to those that are taking place in the countries of the former Soviet Union. The most immediate concern is Iraq's physical reconstruction, including building roads, schools, and power plants. Another immediate concern is Iraq's external debt and its war reparations resulting from the 1990 invasion of Kuwait-estimated to be as much as $400 billion. Additional concerns are the U.N. sanctions against Iraq and the related oil for food program, which still has more than $3 billion in escrow. Potential issues include oversight of the efficiency and effectiveness of reconstruction; the role and contributions of allies, the United Nations, World Bank, and the International Monetary Fund; the pros and cons of forgiving Iraq's external debt; and resolution of the oil for food program.

Governance and Democracy Building

Iraq lacks a democratic tradition, including a stable multiparty political structure and real opportunities for citizen involvement in government decision making. These conditions, together with sharp ethnic, religious, and regional differences in the country, present significant challenges to efforts to promote democracy. Some potential issues include the scope and effectiveness of democracy-building projects; efforts to draft a new constitution, reform existing criminal and civil codes, and develop a neutral and competent police force; effectiveness of anticorruption efforts; and the role of the allies, United Nations, and other international organizations in these efforts.

Weapons of Mass Destruction

Iraq implemented active programs to develop weapons of mass destruction (chemical, biological, and nuclear) and their delivery vehicles, but has not fully accounted for them. Uncertainties over the location of this material pose a threat to U.S. and coalition forces in country and a long-term threat of theft and proliferation to other states or terrorist groups. Iraq's past record of developing weapons of mass destruction also raises questions about the various multilateral export control arrangements and their ability to prevent the proliferation of weapons of mass destruction in countries of concern, such as Iraq, Libya, Syria, and Iran. Potential issues include the cost and effectiveness of U.S. programs to locate and destroy Iraq's weapons, the role of international organizations in this effort, and the effectiveness of international export controls.

These papers raise a number of oversight questions about rebuilding Iraq that Congress may wish to consider. Consistent with our Congressional Protocols, we encourage early discussion with us to explore whether GAO might be of assistance in this regard. If you have any questions, please contact me at (202) 512-3655 or Joseph Christoff, Director, at (202) 512-8979.

Susan S. Westin
Managing Director, International Affairs and Trade

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